Q2 2025 Zee Entertainment Enterprises Ltd Earnings Call Transcript
Key Points
- Zee Entertainment Enterprises Ltd (BOM:505537) reported a significant improvement in EBITDA margins, increasing from 9.7% in Q4 FY '24 to 16% in Q2 FY '25.
- The company has seen a consistent improvement in performance on a sequential basis, with robust free cash generation despite a challenging macroeconomic environment.
- Subscription revenues have shown healthy growth, with a 9% year-over-year increase, driven by price hikes and growth in digital subscribers.
- ZEE5's EBITDA losses have narrowed significantly, from INR 265 crores in Q4 FY '24 to INR 159 crores in Q2 FY '25, indicating progress towards profitability.
- The company has gained 100 basis points in viewership share quarter-on-quarter, strengthening its competitive position in the market.
- Advertising revenues declined by 8% year-over-year, reflecting ongoing headwinds in the ad environment.
- Overall revenues from operations decreased by 18% year-over-year, partly due to a muted movie lineup compared to a high base in the previous year.
- The company remains cautious about the sustainability of advertising revenue pickup beyond the festive season, as rural demand commentary remains uneven.
- ZEE5's revenue growth has been slower than expected, with the need for more subscribers to drive profitability.
- The company faces ongoing legal challenges, including an arbitration case filed by STAR, which could be costly and prolonged.
Ladies and gentlemen, good day, and welcome to the Q2 FY '25 Earnings Conference Call of Zee Entertainment Enterprises Limited. (Operator Instructions) Please note that this conference is being recorded. I will now hand the conference over to Mr. Mahesh Pratap Singh, Head of Investor Relations, Zee Entertainment Enterprises Limited. Please go ahead, sir.
Thank you, Ryan. Hello, everyone. Welcome to our Q2 FY '25 earnings discussion. We hope you've had an opportunity to go through the earnings. Today, we are joined by our Managing Director and CEO, Mr. Punit Goenka; along with the senior management team. We'll start the call with opening remarks from Mr. Goenka; followed by commentary on operating and financial performance by Mr. Mukund Galgali, our acting CFO. We will subsequently open the floor to a question-and-answer session.
Before we get started, let me remind everyone on the call that some of the statements made or discussed on today's conference call will be forward-looking in nature and must
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